Hi, my name is Alex Barth vet. I'm a construction lawyer at the bar at that firm. Today, we're going to talk about pay-when-paid provisions. Let's get started. This is a contractual provision that exists in almost every construction contract that comes across my desk, and it probably exists in almost every contract you sign. So, let's define what it is. A pay-when-paid provision is a contract provision that shifts the risk of non-payment from the party that you sign the contract with to you. As an example, if the owner doesn't pay the contractor, the contractor doesn't have to pay you. This is a legal defense to payment. It's valid and enforceable in Florida, and it's important that you understand if the contract that you're signing contains such a provision. Once you determine that your contract has a pay-when-paid provision, the next question is, what do you do about it? Well, first, you need to determine if it's enforceable in Florida. Pay-when-paid provisions are enforceable if they include certain magic language. What's this magic language? Generally, it's the inclusion of certain words such as "condition precedent" or "contingent upon." If those phrases exist in the pay-when-paid provision, more often than not, that pay-when-paid provision will be found valid and enforceable. Meaning, if the owner doesn't pay the contractor, the contractor may not have to pay you. Once you determine that you have a valid and enforceable pay-when-paid provision in your contract, there are four things you can do to try to overcome it. The first option is to strike the provision. Unfortunately, in this economic climate, it'll be very difficult to strike such a provision. However, you may be able to strike the magic language, which may render the provision unenforceable in its entirety. Next, you can take a...
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Subcontractor payment rights Form: What You Should Know
Sep 5, 2024 — A person or entity subcontracted for work is not legally responsible to the general contractor or its general contractor's sub-contractor for any obligations arising from the subcontracted work. The general contractor or its sub-contractor remains contractually obligated to complete the subcontracted work, including any obligations arising from the subcontracted work. This disclaimer is in effect to the same extent that a written agreement would apply: whether the general contractor and its subcontractor are acting in the contract as general or sub-contractors is immaterial to the effect of this disclaimer. Sep 9, 2024 — The general contractor pays a fixed amount annually to each subcontractor for all services rendered to the general contractor. Sep 9, 2024 — Payments are due and payable at the close of each month and are nonrefundable. PayPal, credit or debit cards are accepted. In the event that the general contractor has paid its subcontractor for services to the general contractor, the general contractor shall refund, or in the event the subcontractor does not receive its payment on or before the termination date, will pay, its subcontractor payment account to the general contractor's subcontractor account. Sep 9, 2024 — Payments are due and payable at the close of each month and are nonrefundable. PayPal, credit or debit cards are accepted. In the event that the general contractor has paid its subcontractor for services to the general contractor, the general contractor shall pay, or in the event the subcontractor does not receive its payment on or before the termination date, will pay, its subcontractor payment account to the general contractor's subcontractor account. Payment orders must be submitted at least five days prior to the termination date for the work for which payment will not be made.
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